Will the Old Tax Regime be Discontinued?

Presently, the new tax regime under section 115BAC is the default tax regime, and the taxpayers have the option to choose old tax regime by filing intimation to the department in the prescribed form. 

The new tax regime has been growing significantly beneficial for middle income tax payers for the past couple of years. Whereas, the old tax regime remains almost unchanged. This has lead to the question of whether the old tax regime could be discontinued, and if it is still applicable. 

Old tax regime is still applicable for FY 2024-25 and FY 2025-26. And it is expected to continue in the near future.

Old Tax Regime Slab Rates for FY 2024-25 and FY 2025-26

There were no changes made to the tax slabs under the old regime. The tax slabs under the old regime are as follows:

• Individuals less than 60 Years of Age

• Resident Individuals Aged 60-80 Years

• Resident Individuals Aged more than 80 Years

Note: 

• Surcharge and cess will be applicable.
• Individual residents with net taxable income less than or equal to Rs.5 lakh will be eligible for tax rebate u/s 87A under the old tax regime, i.e. tax liability will be NIL.

What Exemptions and Deductions are Available Under the New Tax Regime?

Final Word

The old tax regime is still applicable for the current financial year and assessment year, and is not anticipated to be revoked in the near future. Taxpayers who have a lot of tax saving deductions can still opt old regime to minimize their taxes.